The Reserve Bank of India (RBI) has slapped a penalty of Rs 75 lakh on ICICI Bank for non-compliance with regulatory directions concerning property valuation and the opening of current accounts. 

The RBI took the action after a probe was conducted with reference to the bank’s financial position as of 31 March 2024.

Based on the observations during the investigation and subsequent correspondence, RBI issued a show cause notice to the bank asking why a penalty should not be imposed for the violations.

After careful examination of ICICI Bank’s response, the regulator came to the conclusion that the bank had failed to carry out property valuations through independent valuers in certain mortgage loan cases.

Also, the bank had opened and/or maintained certain current accounts in violation of existing regulatory guidelines.

RBI clarified that the penalty has been imposed on ICICI Bank solely on account of regulatory compliance failures. It does not impact the validity of any transactions or agreements entered into by ICICI Bank with its customers.